NewEdge Advisors, a New Orleans-based registered investment advisor, said Thursday that it will now offer advisors an employee model of affiliation, which it calls a W2 model, in addition to an independent, or 1099, model.
In the new employee model, breakaways and other advisors who affiliate with NewEdge Advisors will operate under the NewEdge brand, and NewEdge will invest in their businesses. NewEdge will also purchase the practices of retiring advisors at such firms.
The firm said the first group to affiliate under the new employee model is Reinke Gray Wealth Management, which had joined NewEdge in 2018 under the independent model. The South Dakota-based firm, led by Brad Reinke, oversees $400 million in assets.
NewEdge Advisors, founded by Alex Goss and Neil Turner, currently has 265 affiliated advisors in 32 states who oversee $16.5 billion assets.
Carson has fully acquired another firm in Florida, while Simon Quick Advisors finds its third perfect-fit partner in a Las Vegas-based boutique.
FINRA has been focused on firms and their use of social media for several years.
The model has surged in popularity thanks to its fiduciary appeal, but the show is far from over for no-fee and commission-based arrangements.
Asset managers filing to launch dual share-class mutual funds, creating an ETF sleeve for existing strategies, could end up eroding key benefits of the wrapper.
The two wealth tech firms are continuing to expand their reach among firms as they support advisor productivity and client data protection.
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